Reuters – European hedge funds have been cutting back some of their bets on stocks on concerns over the outlook for economic growth after last year’s profits bonanza, with some fearing markets could still drop below 2009 lows.
Large bets on rising stocks helped hedge funds make gains of nearly 19 percent last year, according to Credit Suisse/Tremont, but prime brokers say funds have grown more cautious in recent weeks in areas such as U.S. and European stocks.
